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EU Offers Belgium Guarantees to Unlock Ukraine Loan Backed by Frozen Russian Assets

Brussels moves to reassure Belgium that the bloc will absorb retaliation and litigation risks linked to using Euroclear-held funds.

Overview

  • A memo from Commission President Ursula von der Leyen promises EU countries will shoulder legal and financial exposure tied to a proposed €140 billion Ukraine loan, including risks that persist after asset immobilisation ends.
  • The guarantees address Belgian concerns linked to assets held at Brussels-based Euroclear and to a bilateral investment treaty with Russia that could fuel legal claims.
  • Belgium previously blocked the plan at the October 23 EU summit and leaders pushed a final decision to December as they debated how to use frozen Russian reserves.
  • Euroclear chief Valérie Urbain said the depository is prepared to challenge any confiscation order in court and warned that even indirect seizure could deter investment and harm the eurozone.
  • France’s Europe minister Benjamin Haddad argued that loan proceeds secured by income from immobilized Russian assets should fund purchases of European weapons and said outright confiscation would breach international law.